IMF says Spain bank cleanup at 'advanced stage'

The International Monetary Fund said Monday that Spain's reforms under its financial-sector support program are close to being complete and that the cleanup of its weakest banks is well-advanced.

"The program remains on track: the clean-up of undercapitalized banks has reached an advanced stage, and key reforms of Spain's financial sector framework have been either adopted or designed," the IMF said.

In a monitoring mission report, the IMF said that most of the measures required of Spain under the European Commission's July 2012 support program for its devastated banking sector have been completed.

"Going forward, it will be important to maintain this momentum with strong completion of initiated reforms and continued vigilant oversight, as risks to the economy and hence to the financial sector remain elevated as Spain undergoes a difficult process of fiscal and external adjustment," it said.